tl;dr
South Korea's central bank, the Bank of Korea (BOK), is considering launching deposit tokens on public blockchains to compete with private stablecoins. Deputy Governor Lee Jong-ryeol described these tokens as centralized stablecoins issued by the BOK, potentially integrated with private stablecoins....
South Korea’s central bank, the Bank of Korea (BOK), is exploring the issuance of deposit tokens on public blockchains to compete directly with private stablecoins and enhance the country’s digital currency ecosystem. Deputy Governor Lee Jong-ryeol described these tokens as centralized stablecoins issued by the BOK, potentially integrated with existing private stablecoins. This unique approach aims to foster a safer, nationally controlled digital currency environment while allowing for a degree of public blockchain interoperability. However, specific details about token access and international availability remain uncertain.
South Korea has experienced a significant increase in stablecoin usage, with approximately $20 billion worth of stablecoins transferred offshore in the first quarter alone, making stablecoins a vital part of its digital asset landscape. Unlike regions such as the European Union, the UK, and the UAE, which regulate stablecoins through licensing, South Korea’s central bank seeks a novel method by issuing its own tokens to maintain monetary sovereignty and compete with private issuers like Circle and Tether. This strategy marks a bold departure from conventional regulatory measures and reflects a broader debate on the best approach to integrating digital currencies into national financial systems.
Meanwhile, Thailand is preparing to boost its tourism sector by enabling payments via digital assets for foreign visitors. The government plans to allow tourists to make payments with cryptocurrencies converted to Thai baht through debit and credit card systems, effectively shielding merchants from having to manage digital assets directly. This initiative, pending regulatory approval and necessary infrastructure upgrades by the Bank of Thailand, follows a successful pilot program in Phuket earlier this year. The move aims to modernize payment options in key tourist areas while maintaining currency stability and merchant convenience.
Together, these developments from South Korea and Thailand illustrate the dynamic landscape of digital currencies in Asia, highlighting contrasting strategies—South Korea’s push for central bank-issued tokens as a sovereign alternative to private stablecoins, and Thailand’s focus on integrating crypto payments into everyday tourism transactions. These efforts underscore the growing importance of digital assets in expanding financial inclusivity and innovation while balancing regulatory and national economic interests.